Home › Circulars › RBI/2009-10/126

UCBs: Depositors can choose renewal term for frozen accounts

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2009-10/126 · issued 20 Aug 2009 · ~1 min read
Quick answerRBI now allows depositors of frozen term deposits to choose any renewal term, not just the original tenure. If no choice is given, banks must renew for the original term. This replaces the earlier mandatory equal-term renewal rule.

What changed

Earlier, banks had to renew frozen term deposits for a term equal to the original tenure. Now, depositors can choose any term for renewal. If the depositor does not specify a choice, banks must renew for the original term.

What it means for you

This gives depositors more flexibility in managing frozen deposits, aligning renewal with their liquidity needs. Banks must update their renewal request forms to include a term option field. It reduces customer complaints and operational friction for UCBs.

Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.

What banks were required to do at the time

Who it affects

Primary (Urban) Cooperative Banks, Depositors with frozen term deposit accounts, Bank operations and compliance teams

❓ Common questions

Regulatory timeline

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

What if the depositor does not specify a renewal term?

If the depositor does not exercise the option, banks must renew the deposit for a term equal to the original term, as per the earlier procedure.

Does this apply to all frozen accounts or only term deposits?

This circular specifically addresses term deposit accounts frozen by enforcement authorities. It does not cover other types of frozen accounts.

📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Repealed by RBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #1837: UBD.(PCB).BPD.Cir.No.4/13.01.000/2009-10 — "Payment of Interest on Accounts Frozen by UCBs" dated August 20, 2009”
📜 Read the original circular — full text as issued by RBI
RBI/2009-10/126   UBD (PCB) BPD Cir No. 4 /13.01.000/2009-10 August 20, 2009 Chief Executive Officer of All Primary (urban) Cooperative Banks Dear Sir/ Madam Payment of interest on accounts frozen by UCBs Please refer to paragraph 2 of our circular UBD (PCB) BPD Cir No 21 /13.01.000/2008-09 dated October 1, 2008 on payment of interest on accounts frozen by UCBs, wherein banks have been advised to follow certain procedure in the case of Term Deposit Accounts frozen by the enforcement authorities. 2. In terms of paragraph 2 (i) of the circular, banks were advised to obtain a request letter from the customer for renewal for a term equal to the original term, on maturity. On a review, it is felt that instead of renewing it for a term equal to the original term, it would be appropriate, if the depositor is given the option to choose the term for renewal of the deposit. While obtaining the request letter from the depositor for renewal, the banks may advise him to indicate the term for which the deposit is to be renewed. In case the depositor does not exercise his option of choosing the term for renewal, banks may renew the same for a term equal to the original term. Yours faithfully, (A. K. Khound) Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2009-10/126 · issued 20 Aug 2009. The plain-English explanation above is BankPulse’s own independent summary.
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BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly).
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=5223&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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